Hyundai Considering to Launch Electric Cars in India; Hybrid Car Plans Likely to Be Shelved
Hyundai Motors is said to be working on an all-electric variant of the Hyundai Kona compact SUV for the Indian market.
Hyundai Motors India Ltd. (HMIL) is likely to postpone and cancel its plans to launch hybrid cars in India as a result of unfavourable tax structure post the implementation of GST in India. Hyundai recently unveiled the 2017 Verna in India at an event in Chennai. Speaking on the sidelines of the Hyundai Verna unveil, Mr. YK Koo Managing Director & CEO - HMIL, said, "There is no support for hybrid...I think we might postpone and cancel hybrid products in Indian market." Under the new GST rules, hybrid cars attract 28 percent tax along with an additional 15 percent cess (effective 43 percent). Also Read: Hyundai Verna 2017 Price in India Likely to Start From INR 8 lakh; Bookings, Launch Date, Mileage, Images, Interiors, Specs, Features - All You Need to Know
Earlier, hybrid vehicles attracted an effective tax of 30.3 percent. The new GST rules have put hybrid vehicles in the same tax slab as that of the luxury petrol and diesel cars. This has resulted in an effective tax increase of 12.7 percent as hybrid car prices have increased in several lakhs. With the unfavourable tax regime, Hyundai is now considering to launch electric vehicles in India. YK Koo further said, "We have electric and hybrid. We have all kinds of technologies. So, we are planning to consider electric vehicles." Read More: Hyundai Verna 2017 Vs Honda City: Price in India, Features, Mileage & Dimensions - Comparison
Earlier this year, Hyundai had announced its plans to showcase its Ioniq hybrid model at the 2018 Auto Expo. Mr. Koo further added, "We have cancelled Ioniq showcase, which was to happen during the next year's auto show." Apart from the Hyundai Ioniq, the company was also planning to launch hybrid variants of the Hyudai Creta and the Verna sedan. However these plans have been shelved as well. If reports are to be believed, Hyundai is working on an all-electric variant of the recently launched Hyundai Kona compact SUV for the Indian market.
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